TNT Takes Action to Strengthen Its Balance Sheet and Build a Stronger Financial Future with Lender Support

HOUSTON, Aug. 23, 2020 /PRNewswire/ -- FR TNT Holdings LLC and certain of its affiliates ("TNT" or the "Company") today announced that they have filed for voluntary chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware to effectuate a transaction that will strengthen the Company's balance sheet and best position TNT for future success. As previously disclosed, all operations will continue as usual without interruption and TNT's executive leadership team is expected to remain unchanged.

TNT will implement a prepackaged plan of reorganization (the "Prepackaged Plan") under chapter 11 of the United States Bankruptcy Code. As disclosed on August 3, 2020, the Prepackaged Plan follows on a Restructuring Support Agreement (the "RSA") with the significant majority of holders of the Company's first and second lien secured loans, along with other supporting parties. The Prepackaged Plan has the support of holders of 98.6% in principal amount of the Company's first lien secured loans and 93.6% in principal amount of its second lien secured loans. Execution of the Prepackaged Plan will enable the Company to quickly and efficiently recapitalize its balance sheet with no impact to the majority of its stakeholders. TNT expects to emerge from chapter 11 proceedings within 55 days with a stronger capital structure.

The Company has also secured commitments from certain of its first lien lenders for an additional $45 million debtor-in-possession financing, which, in addition to TNT's normal operating cash flows, will help fund the process and ensure the Company is able to operate as usual during the chapter 11 proceedings. Upon emergence, TNT will recapitalize and gain new liquidity in the form of a new $225 million term loan provided by the Company's first lien lenders.

Today's filing only includes TNT and Southway. Importantly, all the Company's businesses, whether included in the filing or not, are operating as usual and are expected to do so throughout this process.

"For the past few years, TNT has been seeking a long-term solution that improves our capital structure in order to build a stronger and more successful financial future. This consensual transaction represents the opportunity to accomplish just that," said Michael Appling Jr., Chief Executive Officer of TNT. "Once again, we are incredibly grateful to have the support of our lenders in this process, which will allow us to emerge from the chapter 11 process swiftly and definitively."

Appling continued, "This transaction builds upon the strategies we have already implemented to protect our balance sheet and counter the challenging and unprecedented business environment to ensure we can continue to deliver upon our commitments to our stakeholders. I want to thank our talented team for their focus and commitment to safety ? now and always. We are looking forward to emerging from this process and continuing our work as North America's leader in providing safe, reliable lifting services."

TNT has filed a series of "First Day Motions" that, once approved by the Court, will allow the Company to maintain its usual employee compensation and benefit programs, make payments for goods and services in the normal course, and otherwise operate its business as usual. In addition, the Company is seeking Court approval of a motion that provides for payment of all trade creditors in full for goods and services delivered prior to the filing. These motions are typical in a chapter 11 process and will be heard in the first few days of the case. Once approved, they will allow operations to continue as usual without interruption, with employees, suppliers, vendors, contract counterparties and other trade creditors to be paid in full in the ordinary course of business.

Additional information about TNT's chapter 11 case can be found at https://cases.primeclerk.com/TNTCrane. TNT has also established a hotline to ensure a prompt response to questions pertaining to these proceedings, which may be accessed at 877-930-4316.

TNT is represented by Simpson Thacher & Bartlett LLP and Young Conaway Stargatt & Taylor, LLP, as legal co-counsel, Miller Buckfire & Co., LLC and Stifel, Nicolaus & Co., Inc., as financial advisor and investment banker, and FTI Consulting, Inc. as financial advisor. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities.

About TNT

TNT is a crane services platform that provides operated and maintained ("O&M") crane services and comprehensive lifting services to a broad customer base across multiple sites, with a diversified end market exposure.  As a provider of O&M services, the Company supplies its customers with highly skilled operators, technical expertise and project engineering and design in connection with its lifting services.

SOURCE FR TNT Holdings LLC